ZIMRA revenue collections increase

Zimbabwe’s improving business environment has seen the government’s revenue collector, ZIMRA raking in $1,13 billion in gross earnings during the first quarter of the year as compared to $862 million for the same period in 2017.

The rise in gross collections was mainly due to a rise in consumption by industry and commerce despite low inflows from corporate taxes, mining royalties, capital gains tax and tobacco levy.

The tax authority is however being owed $4,27 billion by industry and commerce.

A customs and tax expert, Mr Elisha Tshuma said the positive revenue performance is due to intensified efforts in income enhancing projects as well as increased use of electronic and plastic money transactions.

“This is a real indicator that despite limited revenue inflows in the past there is optimism of accelerated growth in the near future,” he said.

A local businessman, Mr Shepherd Kembo said while net revenues grew by 2,74 percent with increased growth in withholding tax on contracts, excise duty, carbon tax and value added tax on imports, there is still need for widening revenue collection mechanisms.

The rise in gross revenue collections, which comes after the granting of a tax amnesty to taxpayers to regularise their tax affairs by June, is anticipated to consolidate efforts by treasury to achieve a 4,5 percent economic growth rate by year end.